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When Jerome Powell took over from Janet Yellen as head of the Federal Reserve three years ago, he hosted a farewell dinner for her at his home in Chevy Chase, Md.
At the time, Ms. Yellen passed the baton to Mr. Powell.
Three years later, in many ways, he’s passing the baton to her.
The Fed spent 2020 battling the economic fallout from the coronavirus pandemic with interest rate cuts, bond purchases and emergency loan programs. As Fed officials prepare to meet this week, Mr Powell sees their policies put on hold as they have already pledged to keep rates low.
Ms Yellen, who is set to become President Biden’s treasury secretary this week, is hoping to oversee a wave of government spending aimed at keeping unemployment much lower and preventing inequality from worsening. Mr. Powell handed him the stimulus witness by pledging to keep rates very low until that happened.
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